JEDDAH: Saudi Arabia’s military equipment manufacturing sector is undergoing a significant expansion, emerging as a pivotal element of the Kingdom’s Vision 2030 economic diversification strategy to boost domestic industrial capacity.
Supported by robust government backing, strategic global partnerships, and growing local innovation, the defense industry is becoming a critical contributor to national security and a promising source of non-oil revenue.
Under Vision 2030, Saudi Arabia aims to localize 50 percent of its military spending by the end of the decade. The sector’s regulator, the General Authority for Military Industries, reported notable progress, with localization rising from 4 percent in 2018 to 19.35 percent in 2024 — reflecting steady advances toward self-sufficiency in defense manufacturing.
The Kingdom’s military expenditure reached $75.8 billion in 2024, according to official estimates, representing 3.1 percent of global defense spending. Using its own methodology, the Stockholm International Peace Research Institute estimates the figure slightly higher at $80.3 billion.
The country has allocated about $78 billion for the military sector in its 2025 budget — 21 percent of government spending and 7.2 percent of gross domestic product — supporting its goals to diversify the economy and reduce oil dependence.
